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The Levy Institute Measure of Economic Well-Being

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  • Edward N. Wolff
  • Ajit Zacharias

Abstract

Our measure of economic well-being is motivated by the conviction that there is substantial room for improving existing official measures of the level and distribution of household economic well-being. The definition of the scope of our measure is guided by an extended concept of income that fundamentally reflects the resources that a household can command for facilitating current consumption or acquiring financial and physical assets. In the contemporary United States, three main institutions--markets, the government, and the household--mediate such command. The measure therefore attempts to integrate the following components: money income, wealth, noncash transfers from the business and government sectors, some forms of public consumption, and household production. We discuss conceptual issues relevant to each of the components and outline an approach for combining them.

Suggested Citation

  • Edward N. Wolff & Ajit Zacharias, 2003. "The Levy Institute Measure of Economic Well-Being," Economics Working Paper Archive wp_372, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_372
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    Cited by:

    1. Edward Wolff & Ajit Zacharias, 2009. "Household wealth and the measurement of economic well-being in the United States," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(2), pages 83-115, June.
    2. Harley Frazis & Jay Stewart, 2011. "How does household production affect measured income inequality?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 3-22, January.
    3. Edward N. Wolff & Ajit Zacharias, 2007. "The Levy Institute Measure of Economic Well-Being United States, 1989-2001," Eastern Economic Journal, Eastern Economic Association, vol. 33(4), pages 443-470, Fall.
    4. Chiara Elena Dalla & Menon Martina & Perali Federico, 2019. "An Integrated Database to Measure Living Standards," Journal of Official Statistics, Sciendo, vol. 35(3), pages 531-576, September.
    5. Thomas Masterson, 2011. "Quality of Match for Statistical Matches Used in the 1989 and 2000 LIMEW Estimates for France," Economics Working Paper Archive wp_676, Levy Economics Institute.
    6. Edward N. Wolff & Ajit Zacharias & Asena Caner, 2005. "Household wealth, public consumption and economic well-being in the United States," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(6), pages 1073-1090, November.
    7. Thomas Masterson, 2010. "Quality of Match for Statistical Matches Used in the 1999 and 2005 LIMEW Estimates for Canada," Economics Working Paper Archive wp_615, Levy Economics Institute.
    8. J. Bonke & M. Deding & M. Lausten, 2006. "Time and Money: Substitutes in Real Terms and Complements in Satisfactions," Economics Working Paper Archive wp_451, Levy Economics Institute.
    9. Melissa Holly Mahoney, 2013. "Inequity in American Schools: A New Perspective on the Distributional Effects of School Expenditures on Economic Well-Being," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(4), pages 728-755, December.
    10. Thomas Masterson, 2010. "Quality of Match for Statistical Matches Used in the 1992 and 2007 LIMEW Estimates for the United States," Economics Working Paper Archive wp_618, Levy Economics Institute.
    11. Andrew Sharpe & Jeremy Smith, 2005. "Measuring the Impact of Research on Well-being: A Survey of Indicators of Well-being," CSLS Research Reports 2005-02, Centre for the Study of Living Standards.
    12. Edward N. Wolff & Ajit Zacharias & Thomas Masterson & Selçuk Eren & Andrew Sharpe & Elspeth Hazell, 2012. "A Comparison of Inequality and Living Standards in Canada and the United States Using an Expanded Measure of Economic Well-Being," CSLS Research Reports 2012-01, Centre for the Study of Living Standards.
    13. Jens Bonke & Mette Deding & Mette Lausten, 2009. "Time and Money," Journal of Happiness Studies, Springer, vol. 10(2), pages 113-131, April.
    14. Bonke, Jens, 2008. "Income distribution and financial satisfaction between spouses in Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2291-2303, December.
    15. Andrew Sharpe & Alexander Murray & Benjamin Evans & Elspeth Hazell, 2011. "The Levy Institute Measure of Economic Well-Being: Estimates for Canada, 1999 and 2005," CSLS Research Reports 2011-09, Centre for the Study of Living Standards.

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